Directors National Insurance

Pro rata earnings period?

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Just wanted to check the position where a Director was appointed before the start of the tax year but where he was only paid from the middle of the year. In the present case I’m dealing with he was appointed on 1 November 2018 when the company was formed. Little activity for the first ten months but it is planned to start paying him from 1 October 2019. Am I right that (a) the LEL and PT/ST to use will be the full twelve month ones; and (b) this being the case (and he is paid over the LEL and under the PT/ST) he will get a full year’s contribution credit for state pension etc, regardless of the fact that his pay only started part way through the year?

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RLI
By lionofludesch
09th Sep 2019 09:48

His period starts from when he became a director, not from when he started being paid.

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